From Tesla to Workhorse, here are the 50 most popular stocks among retail investors on Robinhood

GettyImages 1291817095
Robinhood is hugely popular among day traders, putting it at the center of the GameStop frenzy

Robinhood has been the poster child of the commission-free trading movement that has drawn a new generation of investors into the stock market, and its user base skews heavily to Millennial and Gen Z investors. From iconic companies like Apple, to upstarts looking to disrupt whole industries, here are the top 50 stock picks among Robinhood users.

50. Workhorse

Workhorse Truck
Workhorse

Workhorse, the Loveland, Ohio-based electric-vehicle maker, has become a retail favorite among other auto manufacturers, like Lordstown Motors and Canoo.

49. Boeing

Inside the cockpit of Boeing 757 testbed aircraft - Honeywell Aerospace Boeing 757 testbed aircraft
Thomas Pallini/Insider

Shares of the plane-maker have rallied more than 12% so far this year.

48. Zynga

Zynga Peak
Rafael Henrique/SOPA Images/LightRocket via Getty Images

The mobile-gaming company sees more than $1 billion in sales opportunity if it expands beyond mobile games to consoles and computers, Bloomberg reported.

47. Uber

Uber
Photo by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images

Shares of the San Francisco-based ride-hailing company have been barely changed so far this year.

46. United Airlines

Flying United Airlines during pandemic
Thomas Pallini/Insider

The airline slumped amid the COVID-19 pandemic but has turned around as air travel picks back up.

45. SPDR S&P 500 ETF

A number of value stocks have been surging on the S&P 500 in 2021.
Kena Betancur/VIEWpress

The ETF tracking the benchmark index has risen about 15% so far this year.

44. NVIDIA

nvidia impressive ceos 2x1
Jensen Huang, CEO of Nvidia. Nvidia; Skye Gould/Insider

The chip and graphics card producer has rallied more than 50% year-to-date.

43. General Motors

General Motors headquarters Detroit
Paul Hennessy/SOPA Images/LightRocket via Getty Images

The automaker is among a slew of others in the industry that retail traders have rallied behind.

42. Coca-Cola

Coca-cola billboard
Peter Macdiarmid/Reuters

Shares of the Atlanta-based beverage company have rebounded from a slump earlier this year.

41. Vanguard S&P 500 ETF

Vanguard vs Fidelity
MoMo Productions

The exchange-traded fund has rallied 14% so far this year.

40. Norwegian Cruise Line

The Norwegian Prima cruise ship
Norwegian Cruise Line

The cruise industry was hit hard amid the COVID-19 pandemic, but shares of cruise operators are on the rebound as the world reopens.

39. Ideanomics

GettyImages 539998802
P. Steeger/Getty Images

Ideanomics, a small company focused on sustainability, has rallied alongside other meme stocks like GameStop this year.

38. Virgin Galactic

Virgin Galactic
Virgin Galactic

The space tourism company has been a focus among Reddit retail traders for months. Shares soared in May after the company announced its successful test flight.

37. FuelCell Energy

fuel cell
REUTERS/Hugh Gentry

The Danbury, Connecticut-based company creates “clean, efficient and affordable fuel cell solutions,” according to its website.

36. AT&T

AT&T
Brendan McDermid/Reuters

The media and telecommunications company based in Dallas is among retail-trader favorites on Robinhood.

35. Moderna

woman getting vaccine
A physician injects someone with the Moderna Covid-19 vaccine. MediaNews Group/Boston Herald via Getty Images

Moderna shares have rallied in recent days since the pharmaceutical company announced its COVID-19 vaccine should work against the Delta variant.

34. Starbucks

A Starbucks barista makes coffee in Florida.
Jeffrey Greenberg/Universal Images Group via Getty Images

The popular Seattle-based coffee maker recently added oat milk-based drinks to its menu.

33. Twitter

Twitter logo over computer
NurPhoto/Getty Images

The social-media site has been a hub for retail traders exchanging ideas this year.

32. Advanced Micro Devices

austin amd
Jack Plunkett/AP

Advanced Micro Devices, a semiconductor company, is frequently mentioned on Reddit investing threads like Wall Street Bets.

31. Canopy Growth

canopy growth
REUTERS/Chris Wattie

The Canadian cannabis company is one of a handful of its kind that are among retail-trader favorites.

30. Facebook

facebook logo
Getty

The social media behemoth is now worth more than $1 trillion after a federal judge dismissed antitrust lawsuits against the company.

29. Tilray

Tilray marijuana
Tilray

The Canadian cannabis company has seen a lot of Reddit hype as retail investors look to position themselves for the possibility of legalization in the US.

28. Coinbase Global

The photo shows physical imitations of cryptocurrency
INA FASSBENDER/AFP via Getty Images

Coinbase was the first major cryptocurrency exchange to go public on April 14.

27. Bank of America

BofA logo
Carlo Allegri/Reuters

Shares of the Charlotte, North Carolina-based bank have rallied about 36% so far this year.

26. OrganiGram

weed thc marijuana cbd cannabis
Olena Ruban/Getty Images

The Canadian cannabis company is one of several retail traders have hyped up.

25. Alibaba

alibaba jack ma NYSE
Alibaba went public on the NYSE in 2014. Andrew Burton/Getty Images

Shares of the Chinese e-commerce company have fallen about 2.6% this year.

24. Netflix

netflix
Photo Illustration by Chesnot/Getty Images

The streaming site recently launched an e-commerce store to sell items from popular shows like “The Witcher.”

23. Snap Inc.

Snapchat messaging application.JPG
REUTERS/Thomas White

Shares of the social site have rallied about 35% so far this year.

22. Delta Airlines

Delta Air Lines Airbus A320
A Delta Air Lines Airbus A320. Philip Pilosian/Shutterstock.com

The airline is among several others that struggled during the pandemic but has begun to rebound.

21. Churchill Capital Corp IV

money
Boonchai Wedmakawand/Getty Images

Shares of the special-purpose acquisition company have nearly tripled in price since going public earlier this year.

20. Palantir

Alex Karp - CEO of Palantir Alex Karp speaks to the press as he leaves the Elysee Palace in Paris, on May 23, 2018 after the "Tech for Good" summit, in Paris, France, on May 23, 2018.
Palantir CEO Alex Karp. Photo by Julien Mattia/NurPhoto via Getty Images

Palantir CEO Alex Karp said the surveillance company is a favorite stock pick because the company respects the intelligence of the retail-trading community.

19. GoPro

GoPro Inc's founder and CEO Nick Woodman holds a GoPro camera in his mouth as he celebrates GoPro Inc's IPO at the Nasdaq Market Site in New York City, June 26, 2014.  REUTERS/Mike Segar
GoPro Inc’s founder and CEO Woodman holds a GoPro camera in his mouth as he celebrates GoPro Inc’s IPO at the Nasdaq Market Site in New York City. Thomson Reuters

The maker of wearable cameras has rallied 38% so far this year.

18. Zomedica

veterinarian
Westend61/Getty Images

The Ann Arbor, Michigan-based company is focused on helping meet the needs of veterinarians, according to its website.

17. GameStop

gamestop store
John Minchillo/AP

GameStop was recently added to the Russell 1000 Index, a list of the largest companies based on market capitalization, thanks to its epic rally pushed by retail investors.

16. Carnival

carnival cruise
Sam Greenwood/Getty Images

The cruise line industry shuttered amid the COVID-19 pandemic, but operators like Carnival are making a comeback as the pandemic recedes.

15. Aurora Cannabis

Aurora Cannabis
Alberta Cannabis Inc/Handout via REUTERS

Aurora is another Canadia cannabis company that retail traders have flocked to amid excitement over potential legalization in the US.

14. Pfizer

pfizer vaccine us
Irfan Khan / Los Angeles Times via Getty Images

The pharmaceutical company has surged in popularity, largely thanks to the production of its COVID-19 vaccine.

13. Nokia

FILE PHOTO: Visitors gather outside the Nokia booth at the Mobile World Congress in Barcelona, Spain, February 26, 2019. REUTERS/Sergio Perez/File Photo
Reuters

Nokia has been looped into the basket of meme-stocks, like GameStop and AMC, that have gripped retail-traders attention this year.

12. Plug Power

Saudi Aramco hydrogen fueling station
Photo by Wang Haizhou/Xinhua via Getty Images

Plug Power, based in Latham, New York, is focused on creating hydrogen fuel cells to power vehicles.

11. American Airlines

American Airlines tails
American Airlines’ planes parked at a gate in Washington. Joshua Roberts/Reuters

The Fort Worth, Texas-based airline has rallied about 35% year-to-date.

10. Amazon

amazon warehouse truck shipping
ANGELA WEISS/AFP via Getty Images

The e-commerce giant is among the biggest companies in the world with a $1.7 trillion market capitalization.

9. Microsoft

Satya Nadella
Satya Nadella is the CEO of Microsoft. Sean Gallup: Getty Images

Microsoft is among the largest companies in the world with a $2 trillion market capitalization.

8. Disney

Disney World
The Cinderella Castle at Walt Disney World, Florida. Roberto Machado Noa / LightRocket via Getty Images

Shares of the media and entertainment conglomerate have dropped about 3% so far this year.

7. NIO

Nio
STR/AFP via Getty Images

The Chinese electric-vehicle maker has rallied more than 600% in the past year.

6. General Electric

GE.
General Electric reports strong earnings. Hussein Faleh/Getty Images

Shares of the long-time company have been on the rise this year, rallying about 25%.

5. Ford

Biden Ford
President Joe Biden drives the new electric Ford F-150 lightning at the Ford Dearborn Development Center in Dearborn, Michigan on May 18, 2021. Nicholas Kamm/Associated Press

The legacy automaker garnered attention earlier this year when President Joe Biden floored one of its electric trucks.

4. Sundial Growers

Marijuana Cannabis
AP Photo/Steven Senne, File

Sundial, among other Canadian cannabis companies, is a favorite among retail traders.

3. AMC Entertainment

AMC stock
Igor Golovniov/SOPA Images/LightRocket via Getty Images

AMC Entertainment became a retail-trader favorite earlier this year, and led a rally in memes last month amid renewed interest in meme stocks.

2. Apple

Apple CEO Tim Cook
Apple CEO Tim Cook. Karl Mondon/Digital First Media/The Mercury News via Getty Images

The iPhone maker is the most valuable company in the world with a market cap of more than $2 trillion.

1. Tesla

Tesla CEO Elon Musk speaks during the unveiling of the new Tesla Model Y in Hawthorne, California on March 14, 2019.
Tesla CEO Elon Musk. Frederic J. Brown/AFP via Getty Images

Tesla’s Chief Executive Officer Elon Musk has captured retail-trader attention in both his company and in the realm of cryptocurrencies.

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WarnerMedia execs mourn the Disney deal that never happened

Hi and welcome to the Insider Advertising newsletter, where I go over the big news in advertising and media news, including:

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Jeff Bewkes

WarnerMedia dreams of Disney

While the media world awaits an announcement of an Amazon-MGM deal, some WarnerMedia are pondering their history under AT&T ownership and wonder about the mega deals that might have been.

With the news last week that WarnerMedia would merge with Discovery to create a new media giant, the story surfaced that Disney approached Time Warner about a deal in 2016.

From Claire Atkinson’s story:

Executives learned this week through The New York Times that Disney approached their company back in 2016 before AT&T made a deal and are wondering about what could have been if then-Time Warner chief executive Jeff Bewkes made a different call. WarnerMedia is poised to change hands again, after AT&T announced a deal to spin off WarnerMedia and merge it with Discovery.

When WarnerMedia executives sold to AT&T in 2018, their company stock converted to AT&T shares. Those shares are worth less today ($29.52) than they were on the day the deal was consummated ($32.60), while Disney shares recently have doubled in value on its growth in streaming subscribers.

“It was a disaster,” one person familiar with the history said. “It is a horribly performing stock. It is a deep disappointment the way it worked out.”

Read the rest: WarnerMedia executives are heartbroken as they imagine the Disney deal that could have been

Also read:


tim cook peace sign
Apple CEO Tim Cook.

Agencies dump on Apple’s new ads

As Apple put the squeeze on ad tracking, it rolled out its own new ad format, Suggested Apps, to help developers get their apps discovered.

But advertisers told Lara O’Reilly that the ads were expensive and hadn’t delivered meaningful results.

Thomas Petit, a growth-marketing consultant, said in testing of Apple’s search-tab campaigns, the cost per installations was up to triple-digit percentages higher than Apple’s preexisting search-ads product.

It’s still early days, but if the new format was meant to be a panacea for advertisers who are now having a harder time zapping ads to people on Apple devices, it hasn’t worked out that way just yet.

Read the rest here: Apple just rolled out a new ad format, but advertisers say it’s too expensive and underperforms


instagram covid 19 vaccine misinformation 4x3

Advertisers battle misinformation

Efforts to help advertisers avoid misinformation are gathering steam.

Publicis is the latest big ad holding company to use NewsGuard’s tool to keep ads off shady websites, after IPG and Omnicom.

NewsGuard shared a case study with Tanya Dua showing that for one advertiser, using its tool lowered the cost of its ads while making them more efficient – suggesting that staying off shady sites isn’t just good for brands’ image, it could also be good for business.

But the automated nature of programmatic advertising means advertisers can still wind up on shady sites. And some brands also pull ads in response to breaking news or avoid entire categories of sites, which can harm legit news publishers.

Read the rest: IPG Mediabrands is using a new tool to help advertisers avoid misinformation and says it’s already increasing click-through rates 143%


Other stories we’re reading:

That’s it for today – thanks for reading, and see you next week!

– Lucia

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Meet the PR firms challenging the giants

Hi and welcome to Insider Advertising for May 24. I’m senior advertising reporter Lauren Johnson, and here’s what’s going on:

If this email was forwarded to you, sign up here for your daily insider’s guide to advertising and media.

Tips, comments, suggestions? Drop me a line at LJohnson@insider.com or on Twitter at @LaurenJohnson.


Barbara Bates, global CEO of Hotwire
Barbara Bates, global CEO of Hotwire

9 public relations companies are challenging the status quo and taking on giants like Edelman and BCW

Read the story.


David Zaslav
President and CEO, Discovery David Zaslav speaks onstage during the Discovery, Inc.’s Summer 2019 TCA Tour at The Beverly Hilton Hotel on July 25, 2019 in Beverly Hills, California.

David Zaslav is about to shake up Hollywood as the new Discovery-WarnerMedia chief. Insiders describe an aggressive deal-maker and demanding boss.

Read the story.


Key CEO Evan Wayne
Key CEO Evan Wayne

A startup that wants to help creators harness fans’ contact info has raised $3 million in seed funding

Read the story.


Other stories we’re reading:

Thanks for reading and see you tomorrow! You can reach me in the meantime at LJohnson@insider.com and subscribe to this daily email here.

Read the original article on Business Insider

Billionaire media mogul Barry Diller calls cryptocurrencies a ‘con’ and says price forecasts are ‘nutso’

Barry Diller
IAC Chairman Barry Diller.

  • Barry Diller, IAC’s chairman, called cryptocurrencies a “con” during a CNBC interview on Friday.
  • Price calls of “$40,000, $12,000” on cryptocurrencies are “nutso talk,” he told “Squawk Box.”
  • Diller made his comments during this week’s crash in bitcoin and other cryptocurrencies.
  • See more stories on Insider’s business page.

Cryptocurrencies are a “con,” the billionaire investor Barry Diller told CNBC on Friday. He voiced his distrust of the asset class that’s been dragged sharply lower this week largely on regulatory concerns.

The chairman of IAC, which runs internet and media brands including Care.com and The Daily Beast, initially balked at the question from “Squawk Box” about his thoughts on digital currency but quickly proceeded to answer.

“Yeah, absolutely,” he said as he confirmed his view that cryptocurrency is a con. “I watch some of the people that you have on and they talk about it – $40,000, $12,000, whatever. I think, ‘This is nutso talk,'” he said.

Diller, also the chairman of Expedia and the founder of Fox Broadcasting, made his comments on the same day that bitcoin swung down 10% after China reiterated its call to restrict mining and trading activities surrounding the largest cryptocurrency.

China’s statement, led by Vice Premier Liu He, threw off course bitcoin’s attempt to recover losses from its slide of more than 35% in a matter of days. A midweek sell-off was sparked after the People’s Bank of China said digital tokens couldn’t be used as a payment form by financial institutions. Other cryptocurrencies, including ether, the token of the ethereum blockchain, were also slammed lower in the wake of China’s regulatory threats.

Diller sat down with CNBC in an interview, during which he called this week’s merger plan between AT&T’s WarnerMedia and Discovery a “great escape” for AT&T.

Next week, IAC is set to spin off the video-hosting site Vimeo, whose shares are set to trade under the “VMEO” ticker on the Nasdaq starting Tuesday.

Read the original article on Business Insider

Media M&A chatter is growing after WarnerMedia and Discovery’s merger

Hi and welcome to Insider Advertising for May 20. I’m senior advertising reporter Lauren Johnson, and here’s what’s going on:

If this email was forwarded to you, sign up here for your daily insider’s guide to advertising and media.

Tips, comments, suggestions? Drop me a line at LJohnson@insider.com or on Twitter at @LaurenJohnson.


WarnerMedia Stankey
AT&T CEO John Stankey

WarnerMedia and Discovery’s merger is reigniting media M&A chatter. These are the potential deals that could rock the industry this year.

Read the story.


Lachlan Murdoch
Lachlan Murdoch, co-chairman and chief executive officer of Fox Corp., attends the annual Allen and Co. Sun Valley media conference in Sun Valley, Idaho, U.S., July 11, 2019.

2 years after being named CEO of Fox, Lachlan Murdoch is pulling all-nighters to prove he is a worthy successor of his father

Read the story.


coca cola scale back brands 2x1

Coca-Cola’s experiment to acquire and build out its non-soda offerings killed more brands than it launched. Now it’s gone from a staff of hundreds to just a few people as the new CEO winds it down.

Read the story.


Other stories we’re reading:

Thanks for reading and see you tomorrow! You can reach me in the meantime at LJohnson@insider.com and subscribe to this daily email here.

Read the original article on Business Insider

Where WarnerMedia-Discovery will find $3 billion in cuts

Hi and welcome to the Insider Advertising newsletter, where we break down the big news in advertising and media news, including:

WarnerMedia-Discovery cuts

TV ad prices spike

Anheuser-Busch’s data play

First, if you got this newsletter forwarded, sign up for your own here.


david zaslav sun valley
David Zaslav, CEO of Discovery Inc., at the Sun Valley conference in 2016.

WarnerMedia and Discovery deal synergies

Now that WarnerMedia and Discovery have announced their planned merger, many employees no doubt are jittery about the prospects of job cuts.

The companies said they’d be seeking $3 billion in savings, and as much as 75% of the pledged cost savings can come from cutting staff and overhead in big mergers like this, sources told Insider.

Key points:

  • Some cost savings could also come through sharing resources, such as deduplicating subscription costs for sales software and professional services fees.
  • One media analyst pointed out that Warner already went through robust cost-cutting and that advertising sales could be somewhat spared because of the importance of client relationships.
  • The content side is expected to be relatively secure, since there’s little overlap between the two companies’ assets and content is how they’re pitching the merger as a way to compete with Netflix and Disney.

Read more:

WarnerMedia-Discovery merger is expected to create $3 billion in savings – here are some of the jobs at risk

Now that Jeff Zucker’s golfing buddy is set to run Discovery-WarnerMedia, insiders say his retirement plans could be put on hold

Amazon had tapped WarnerMedia CEO Jason Kilar to run its burgeoning media empire, but he turned it down

Inside the massive WarnerMedia-Discovery media marriage: The bankers and lawyers who played key roles, and how it came together


Extra Gum commercial

TV ad prices spike

Brands like Bud Light and Mars Wrigley are out with new campaigns, hoping to capitalize on the return to normalcy, Lauren Johnson reports.

But the increased demand for TV inventory, coupled with a decline in ratings as people cut the cord, has led to a spike in prices – as much as 30%.

However, advertisers are wary of paying too much, and there are other ad outlets like audio and streaming services are calling.

Read more: TV ad prices are soaring as brands like Mars embrace the return to normalcy


FILE PHOTO: Anheuser Busch's Budweiser and Bud Light Beer on display at a Wal-Mart store in Chicago, January 24, 2012. REUTERS/John Gress
Anheuser Busch’s Budweiser and Bud Light Beer on display at a Wal-Mart store in Chicago.


Anheuser-Busch taps into data

The privacy era is leading advertisers to change how they target and measure their ads and get their data house in order.

One is beer giant Anheuser-Busch InBev, which has prepared for the shift by beefing up its first-party data, adding information about more than 2.5 billion consumers over the past two years.

The company told Tanya Dua having this data has helped it improve its ad targeting, leading to spikes of up to 80% in some cases. It’s also helping with things like new product research.

Maybe most important, it’s reduced its dependency on the walled gardens like Facebook and Google.

Read more: Anheuser-Busch InBev is doubling down on consumer data to get around new ad targeting limits, and it’s already seeing sales spike as much as 80% in tests


Other stories we’re reading:

That’s it for today. Thanks for reading, and see you back here in a week!

– Lucia

Read the original article on Business Insider

HBO Max, Chip and Joanna Gaines, and ‘Shark Week’ are just some of the 100-plus brands included in AT&T and Discovery’s massive streaming deal

zack snyder's justice league
“Zack Snyder’s Justice League” aired on HBO Max this year.

AT&T announced plans on Monday to merge its WarnerMedia content arm with media company Discovery.

When complete, more than 100 brands – including HBO Max, Warner Bros., and Chip and Joanna Gaines’s Magnolia Network – will exist in one unit as one of the largest content libraries in the world, one that would give AT&T a strong edge in the streaming wars against the reigning Netflix.

Here are the brands that have been publicly announced as part of the merger:

  • HBO
  • Warner Bros.
  • Discovery
  • DC Comics
  • CNN
  • Carton Network
  • HGTV
  • Food Network
  • The Turner Networks
  • TNT
  • TBC
  • Eurosport
  • Magnolia Network
  • TLC
  • Animal Planet
  • ID

A WarnerMedia spokesperson said the company is working to compile a full list.

Discovery CEO David Zaslav said Monday that WarnerMedia and Discovery had spent heavily, to the tune of $20 billion annually, on content. That’s larger than the $17 billion that Netflix plans to spend on content in 2021.

Zaslav said the proposed company would announce a new name soon, and news surfaced on Tuesday that Zaslav has signed a new contract to act as head of the company through 2027, sources told Axios. The merger is expected to close in mid-2022.

Read more: The 19 most powerful WarnerMedia execs running its studios and networks

Discovery’s streaming unit launched in January with prices starting at $4.99. The Discovery Plus subscription includes shows from well-known brands like Food Network, HGTV, TLC, BBC, and Discovery Channel, which airs the popular “Shark Week” program each year. It also features a reboot of “Fixer Upper” from the beloved home renovation duo Chip and Joanna Gaines, as well as more content from the couple’s Magnolia Network.

HBO Max launched in 2020, when the pandemic had driven people into their homes and quickly grew its subscriber base. That growth was buoyed by the company’s decision to release “Wonder Woman 1984” simultaneously on the streaming platform and in theatres.

Read the original article on Business Insider

WarnerMedia staffers are bracing for the AT&T spinoff

Hi and welcome to Insider Advertising for May 18. I’m senior advertising reporter Lauren Johnson, and here’s what’s going on:

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Tips, comments, suggestions? Drop me a line at LJohnson@insider.com or on Twitter at @LaurenJohnson.


David Zaslav, chief executive officer of Discovery Communications
David Zaslav, chief executive officer of Discovery Communications, arrives at the annual Allen & Company Sun Valley Conference, July 9, 2019 in Sun Valley, Idaho. Every July, some of the world’s most wealthy and powerful businesspeople from the media, finance, and technology spheres converge at the Sun Valley Resort for the exclusive weeklong conference.

Inside WarnerMedia’s spinoff from AT&T

On Monday, AT&T confirmed that it plans to spin off WarnerMedia and combine it with Discovery Communications, reversing the telecom’s $85 billion bet on Time Warner in 2018.

The blockbuster deal has insiders swirling about the new company, which will be led by Discovery CEO David Zaslav:


Abel Clark, Cision

Public relations tech giant Cision faces a collective action lawsuit over overtime pay

Read the story.


airbnb and vrbo compete for hosts 2x1

Expedia Group’s Vrbo is unapologetically luring hosts from rival Airbnb with cheeky ads and new perks as short-term-rental platforms look to grow supply ahead of a busy summer for travelers

Read the story.


Other stories we’re reading:

Thanks for reading and see you tomorrow! You can reach me in the meantime at LJohnson@insider.com and subscribe to this daily email here.

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The merger of WarnerMedia and Discovery has at least $3 billion in ‘cost synergies,’ a phrase that often means layoffs

John Stankey, WarnerMedia
AT&T CEO John Stankey.

  • The merger of AT&T’s WarnerMedia with media company Discovery includes at least $3 billion of annual “cost synergies.”
  • AT&T didn’t detail these cost cuts when it announced the merger on Monday.
  • Cost “synergies” often mean layoffs.
  • See more stories on Insider’s business page.

US telecom giant AT&T on Monday announced it would merge its content unit WarnerMedia with media company Discovery, creating a new streaming giant that could go head-to-head with Netflix and Disney.

In the press release, AT&T highlighted that the deal had “at least $3 billion in expected cost synergies annually.” These “synergies,” or cost reductions, would allow the newly formed company to invest in its content and scale its business, AT&T said.

Cost “synergies” are a common feature of big deals, especially when companies have overlapping operations, as is the case with WarnerMedia and Discovery. They can take many forms, including layoffs, the consolidation of suppliers, or the sharing of office space.

WarnerMedia – which includes HBO, TNT, CNN, and Warner Bros. – and Discovery both have entertainment and news assets. Both have streaming platforms: HBO Max for WarnerMedia, and Discovery Plus for Discovery.

AT&T did not detail the cost savings when it announced the deal Monday. Insider has reached out to AT&T and Discovery for comment.

AT&T shareholders would receive stock equating to 71% of the new company, while Discovery shareholders would own 29%, the companies said in the press release.

Read the original article on Business Insider

AT&T is combining WarnerMedia with Discovery to create a new streaming giant

WarnerMedia Stankey
AT&T CEO John Stankey

  • AT&T said Monday it would merge its WarnerMedia content unit with Discovery.
  • The deal paves the way for a new streaming giant that could compete with Netflix and Disney.
  • AT&T would receive $43 billion in cash, debt securities, and WarnerMedia’s retention of certain debt under the proposed deal, according to an SEC filing.
  • See more stories on Insider’s business page.

AT&T on Monday announced plans to merge its WarnerMedia content unit, which includes HBO, TNT, CNN, and Warner Bros., with Discovery.

The deal paves the way for a new streaming giant that could compete with Netflix and Disney.

AT&T intends to split off the assets it acquired when it bought Time Warner for $85 billion in 2018.

AT&T would receive $43 billion in cash, debt securities, and WarnerMedia’s retention of certain debt under the proposed deal, according to an SEC filing. AT&T shareholders are set to receive stock equating to 71% of the new company, with Discovery shareholders owning the remainder.

The transaction, which has already been approved by both the AT&T and Discovery boards, is anticipated to close in mid-2022.

In its SEC filing, AT&T said that it expects the new company to have a 2023 revenue of around $52 billion.

AT&T said that the deal would create at least $3 billion in expected “cost synergies” annually for the new company, which could mean job cuts.

Discovery President and CEO David Zaslav is set to lead the proposed new company. Its board of directors will have 13 members: seven appointed by A&T, and six appointed by Discovery.

The company said it would combine WarnerMedia’s entertainment, sports, and news assets with Discovery’s entertainment and sports businesses to create “a premier, standalone global entertainment company.”

AT&T said that the new company would be able to invest in more original content for its streaming services, create new opportunities for under-represented storytellers and independent creators, and create more family-friendly nonfiction content.

AT&T had been planning to expand HBO Max internationally, and the Discovery combination could be a big boost to those plans. Discovery owns European rights to Olympic Games and owns Eurosport.

AT&T, which has been led by John Stankey since July 2020, has seen steady growth of HBO Max since it launched last year. It gained almost 3 million subscribers in the first quarter of 2021, bringing total subscribers to 9.7 million. The platform is set to expand its reach from just the US, launching in Latin America next month. In total, HBO Max and HBO combined have about 64 million subscribers globally, compared to Netflix’s 208 million.

Discovery Plus launched in the increasingly crowded streaming market in January. The streaming platform is home to 55,000 episodes of shows from brands like HGTV, Food Network, TLC, A&E, History Channel, and the Discovery Channel, which airs the popular Shark Week series each year. Discovery Plus also features content from the BBC.

This is a developing story. Please refresh for updates.

Read the original article on Business Insider